COMMENT:

The six months ended May 31 was a particularly volatile period on global sharemarkets, as demonstrated by the figures in the accompanying table.

The good news is that Australasian markets performed particularly well during this period, but the bad news is that this stellar performance will be difficult to maintain in the long run.

The first point to note is that major markets suffered huge losses in December and May but the NZX and ASX avoided most of the carnage.

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Consequently, the New Zealand and Australian markets both appreciated by 12.9 per cent, in capital terms, in the six